Benefits to Using a Single Vendor for HRIS - HRIS Payroll Software
hris benefits

Benefits to Using a Single Vendor for HRIS

By: Dave Rietsema
Share on FacebookTweet about this on TwitterShare on LinkedIn

HRIS solutions have evolved dramatically over the last decade, with the most radical changes occurring in just the past few years. Despite these dramatic changes, about 47 percent of employers that use an HRIS solution have used their current system for seven years or more. In these cases, employers generally “upgrade” their systems and integrate additional systems rather than replacing the whole system with a single cohesive solution.

As employers add more systems and continue to drag out the life of their legacy HRIS, many disadvantages generally begin to surface. Data leaks, errors, and double data entry are just a few issues that may be present with the patchwork approach. Single vendor solutions can help companies to avoid these issues and can offer many other benefits.

Eliminates Conflicting Upgrades

When multiple systems are used for HR and payroll management, the upgrades that may be necessary for each system can begin to conflict with one another. This can bog the systems down and introduce incompatibilities. Single source solutions eliminate the possibility of conflicting upgrades by offering just one system that can be used to complete many functions.

Reduces Costs

While many companies are hesitant to replace their existing HRIS solutions because they think that the cost will be greater, a single vendor HRIS solution may in fact save costs. Bundle deals for multiple services are available from most vendors that can be far more cost effective than paying for single services from multiple vendors. Companies are also in a better position to negotiate with vendors when they are receiving multiple services.

Increases Efficiency in Several Areas

When multiple systems are used within an organization, there are many different vendors to keep track of. This can make it inefficient to access support services when needed to correct errors or discuss aspects of service. A single source vendor obviously eliminates this issue, as there is a single phone number, email address, or online resource for obtaining support.

In addition to support efficiencies, a single source HRIS solution can also eliminate the need for double data entry, plugging information that is entered into all of the necessary places. This can expedite benefit enrollment, make deduction calculations automatic, and speed up many other processes involved with human capital management and payroll.

Reduces Propensity for Errors

When data only needs to be entered once, it removes the multiple entry points where errors may be made. In the case of employees’ personal information, having the employees themselves enter their information is often the solution that is best for avoiding errors. Time and attendance tracking, payroll, development tracking, and other functions that are handled through the system will also be less prone to errors when a single source is used for data entry than when data must be manually entered into multiple systems or batch transferred from one system to another.

Simplifies Reporting

Although systems may be integrated, they are often not connected closely enough to create reports that utilize and cross reference information from several systems. When a single vendor is used for HRIS and payroll services, the analytics may be more valuable and conducive to decision making. The need for data consolidation is also eliminated, speeding reporting capabilities and making it possible to receive real-time, up-to-the-minute data in reports.

Request Free HR Software Demos

Find the best HRIS vendor for your company right now!